Technical Analysis is most affective in removing stocks from...

Technical Analysis is most affective in removing stocks from attention that are not in a position to rise in the future time frame that you have chosen. The first criteria used removes those stocks. The second criteria used is to highlight the peaks and troughs of the stock price as it rises above the 'normal' average price. The peaks and troughs, strength and weakness of a stock price is shown through momentum indicators. Momentum indicators are indicators of the sentiment of the stock followers and probably follow pschological patterns of fear and greed. At some point the stock stops rising and weakens to a point as to be not considered for momentum trading. Stocks are no different from vegetables which are seasonable and probably can be plotted likewise. Guppy has the right idea in saying that technical analysis is all about probabilities, get as many positives in the share price trading before buying. That way the downside risk is lessened. If you are looking for a 100% system then you will be disappointed as the larger market or events can come over the top of an individual stock. Institutions do not like the little man winning, nor do casinos, hence the maximum bet allowed in casinos. However there are periods in a market when any fool can make money, but they are rare and the window is soon closed.